$Netflix(NFLX.US)
$NVIDIA(NVDA.US)$Intel(INTC.US)Context: Netflix is falling because Youtube is eating it's lunch. Since walking away from the merger with Warner Bros. Discovery 7 months ago, the share rose 10.4% but it has been on the downtrend ever since. Youtube is proving more popular as it's viewership was growing 14.2% in this July versus Netflix which shrunk by 7.8%. This has resulted in major Investment house like HSBC, and Well Fargo downgrading this stock.
My trade: sell
Takeaway: Netflix has endured 2 major falls, in 2011 72% drop and in 2008 37% drop and each time it came back stronger. Coming back this time around looks harder as it need to fight with Youtube which is offering mostly free content. Can Netflix fight back, let's continue watching Netflix!
The copyright of this article belongs to the original author/organization.
The views expressed herein are solely those of the author and do not reflect the stance of the platform. The content is intended for investment reference purposes only and shall not be considered as investment advice. Please contact us if you have any questions or suggestions regarding the content services provided by the platform.